In today's global business environment, financial institutions often have corporate and commercial clients that operate in numerous regions throughout the world. For example, a parent company headquartered in the United States may have subsidiary companies located in China, Germany, Australia, and a host of other countries across the globe. Financial institutions offering treasury services to such multinational clients typically manage their risk exposure by establishing transaction, daylight, and overnight limits that are used for monitoring and decisioning payment releases. To support the management and application of these treasury limits, it is not uncommon for a single financial institution to maintain separate and distinct regional and/or country-specific platforms and processes. However, managing a shared global treasury limit and subsequent payments decisioning for multinational clients requires extensive coordination between regional divisions of a financial institution and a significant investment of time and effort. Furthermore, the manual nature of applying treasury limits when decisioning payments across multiple platforms offers very little flexibility to accommodate clients' global needs.
Many financial institutions utilize inconsistent processes and systems for establishing and managing treasury limits across multiple platforms and lines of business. Lack of access to centralized data contributes to this inconsistency, which ultimately increases operating expenses and exposes the institution to higher levels of risk.